<Insert Picture Here>

Product Lifecycle Management

in Consumer Goods
Bernard Goor, Global Lead, Consumer Goods IBU
Safe Harbor Statement

The following is intended to outline our general

product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decision. The
development, release, and timing of any features
or functionality described for Oracles products
remains at the sole discretion of Oracle.
Key Take-Aways

9 PLM is a business imperative in CG

9 We have a differentiated PLM offering
9 We have referenceable customers
9 You can sell and implement Oracle PLM as a value-
add solution on top of SAP ERP
9 The value created by PLM can justify high revenues
for both Oracle and its partners
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
 Innovation and Product Lifecycle Management
Product Lifecycle Management is a Business Imperative!

Innovation can be the engine for

sustainable growth, but only when it is
Shareholder actualized through disciplined,
Value repeatable processes and enabled by
a robust infrastructure.

Deloitte, The Future of Consumer

Sustainable Product Companies: Products, Staying
Growth a Step Ahead

Innovation
Doing innovation right means
developing a repeatable, scalable, and
consistent way of converting ideas into
results. Product
Lifecycle
A.G. Lafley and R. Charan, The Game Management
Changer
 Industry Challenges and Innovation Enablers
Driver Challenges Imperatives Innovation Enablers
Competition Low growth Product differentiation New product development
Margin pressures Formulation management
Packaging management

Government Complex regulatory Proactive compliance Compliance management

environment Labeling management

Supply chain Supply chain complexity
Lack of transparency
through complex product
structure and extended
supply chain
Global visibility and One version-of-the-truth for all
rationalization product data
Traceability One version-of-the-truth for all
Cost reduction supply network data
Supplier collaboration

Customers Cost to serve Consumer insights Consumer-driven R&D

Private label growth Cross-enterprise Data synchronization
collaboration

Consumers Consumer concerns Health, nutrition and Nutrition and ingredient labeling
(health and wellness, wellness trend Product quality
product integrity, ease of Food safety and Food safety throughout supply
use) product integrity network
First and second Preventive actions
moments of truth against recalls
 Increasing Importance of Innovation

New product introduction will become a more critical

business strategy over the next few years

Primary Business Strategy 2007 Primary Business Strategy 2010

Drive growth in
Collaborate w/ new product
Other introduction Collaborate w/ Other
strategic Drive growth in
partners 6% 17% strategic 5%
new product
12% partners
introduction
12%
Maximize opps/ 31%
Become a mitigate risk
global player in 8% Become a
new markets global player in
9% new markets Maximize opps/
Maximize mitigate risk
19%
return from 8%
Increase
existing assets Increase Maximize
margins
21% margins return from
27%
15% existing assets
10%

Source: AMR Research, Tech Trends 2007, Consumer Goods Technology, October 2007
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
 Current Innovation Performance

Lack of innovation performance

More than 80% of new products launched failed to meet their
goals
Only 1% or 2% of new consumer products became $100MM
brands
Lack of breakthrough innovation
56% of new products launched were current products or line
extensions
Increased competition from retailers
In the face of the failure of Consumer Goods companies to
innovate, retailers are becoming innovators and launching
new products

Source: AMR Research, Part 2: How Can You Be Demand Driven If You Dont Know Your Shopper?, March 2007
 What It Takes To Win in Innovation

All elements of 1 Reward and Recognition

the Innovation Culture
Pyramid need
2 Objectives and
to be aligned Strategies

to support
7
optimal 3 Organization

innovation
People
results 4 Tools and Systems

Process

5 Consumer
Platforms Ideas Projects Products
Needs

Sales and Quality and

6 Margins
COGS Productivity
Compliance
Risk
 Innovation Goal
Impact Cost, Time, Risk and Value at the Same Time

Product Launch
Product Launch

Value
Cash flow

Risk

Time
Cost

Time
Innovation in Consumer Goods
Innovation is a Complex Process

Portfolio Management

Innovation Metrics
Strategies
Project Management

Concept Product
Consumer Insights Ideas Feasibility Scale-Up Launch
Development Development

Platforms

Concept Brief Manufacturing Processes Finished Products

Product Brief Formulations/BOMs Labels and Artwork

Customer Requirements Ingredients Compliance

Suppliers and Co-Packers Packaging Materials Quality and Safety

 Innovation in Consumer Goods
Leading to Specific Challenges and Pain Points

Challenges Typical Pain Points

Inability to meet launch dates
Managing innovation
Disconnected innovation activities managed by multiple systems
projects and
Poor collaboration and approval processes
portfolios in one
No visibility into innovation projects globally
global framework
Stale project and portfolio measurements
with local flexibility
Lack of involvement from value chain partners
Disconnected data model
Incomplete or inaccurate specifications
Managing product and
Lack of global visibility and traceability
supplier data in one
Manual review and approval process
single connected
Poor capability to re-use and rationalize raw materials
version of the truth
Lack of visibility into global sourcing network
Poor external collaboration
Lack of compliance screening
Improving product
Slow manual (re)formulation and optimization process
formulation,
Isolated packaging and labeling activities
packaging, labeling
Manual packaging and labeling collaboration and approval
quality, compliance
No visibility and traceability into compliance and quality
and safety with
Disconnected systems storing formulation, compliance,
predictable processes
nutrition, quality and safety data
Innovation in Consumer Goods
The Root Cause: Islands of Information in Disconnected Systems

SUPPLIERS
ARTWORK OUTSOURCED
DESIGN PARTNERS
CAD Quark Adobe
ERP SCM

Design REGULATORY
Samples
CUSTOMERS Briefs
Package BODIES
Designs
Submission
Files Value Chain
Artwork Files
Enterprise Files Formulas

Ideas Audits
Specifica LEGAL & CA
MARKETING Specifications
tions CAD
Models Notes EDMS
Project Access
Excel

PROCUREMENT
R&D
(EUROPE)
R&D PRODUCTION ERP
Excel (ASIA) R&D
Recipe
Mgmt (US)
CAD SCM MES
Spec ERP
MCAD DB
 Innovation in Consumer Goods
The Root Cause: Poor Access to Information

Projects and portfolios

Manufacturing Specifications
SUPPLIERS
ARTWORK OUTSOURCED
DESIGN PARTNERS
CAD Quark Adobe
ERP SCM

Design REGULATORY
Samples
CUSTOMERS Briefs
Package BODIES

COGS Formulation
Designs
Submission
Files Value Chain
Artwork Files
Enterprise Files Formulas

Ideas Audits
Specifica LEGAL & CA
MARKETING Specifications
tions CAD
Models Notes EDMS
Project Access
Excel

PROCUREMENT
R&D
(EUROPE)
R&D PRODUCTION ERP
Excel (ASIA) R&D
Recipe
(US)

Compliance
Mgmt CAD

Packaging
Spec ERP SCM MES
MCAD DB

Quality/Safety Labeling
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
Innovation in Consumer Goods
The Solution = Product Lifecycle Management

SUPPLIERS
ARTWORK OUTSOURCED
DESIGN PARTNERS
CAD Quark Adobe
ERP SCM

REGULATORY
CUSTOMERS BODIES

Value Chain
Enterprise

LEGAL & CA
MARKETING
Notes EDMS
Project Access
Excel

PROCUREMENT
R&D
(EUROPE)
R&D PRODUCTION ERP
Excel (ASIA) R&D
Recipe
Mgmt (US)
CAD SCM MES
Spec ERP
MCAD DB
 Innovation in Consumer Goods
Implementing an Integrated Innovation Framework

Create, manage and approve

product data, from raw
materials and components Prototype, evaluate and optimize
to finished products formulations and BOMs

Manage supply chain Manage packaging and

entities and sourcing labeling development
relationships, and process and data
collaborate with
suppliers

Ensure quality, safety

Synchronize product and compliance
data with internal
systems and external
data pools
Manage cross-functional
innovation portfolios,
projects and activities
Integrated Innovation Framework
How Does It Work?

Portfolio Management

Project Management

Innovation
Ideas
Platforms

Project Data

Reference
Data

Finished
Product Formulation Compliance
Mgt Quality
Labeling
Manufacturing Nutrition
Process

Packaging Ingredients

Supplier Mgt

This slide should not be presented as is. It contains a whiteboard

session that should be drawn on a whiteboard by the presenter.
 Innovation in Consumer Goods
Offering a Holistic Response to Innovation Challenges

Challenges Oracle Capability The Oracle Difference

Managing innovation
projects and
Project and Portfolio
portfolios in one
Management
global framework
with local flexibility
Faster product
and packaging
development
Managing product and
Specification Management
cycles, delivering
supplier data in one higher quality,
Supplier Management
single connected
version of the truth
Data Syndication lower cost and
more compliant
products
Improving product Formulation and BOM responding to
formulation, Management consumer needs
packaging, labeling Packaging & Labeling
quality, compliance Management
and safety with Compliance and Quality
predictable processes Management
 Innovation in Consumer Goods
Delivering Valuable Answers to all Stakeholders

Projects and portfolios

Manufacturing Specifications

COGS Formulation

Compliance Packaging

Quality/Safety Labeling
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
 Product Lifecycle Management
Solution Components

A Single Version of the Truth

Create, manage and approve
product data, from raw
materials and components Prototype, evaluate and optimize
to finished products formulations and BOMs

Manage supply chain

entities and sourcing Manage packaging and
relationships, and labeling development
collaborate with suppliers process and data

Ensure quality, safety

Synchronize product and compliance
data with internal
systems and external
data pools
Manage cross-functional
innovation portfolios,
projects and activities
 Project and Portfolio Management

Project and Portfolio Management

enables the cross-functional
management of product launches,
leveraging portfolio management
capabilities to optimize results across
all projects

Enablers
One place for managing all innovation projects
globally
Portfolio management and analytics
Configurable best-in-class stage-gate framework
Global visibility of all innovation data (e.g.
consumer requirements, product brief,
formulations, packaging, labeling, suppliers)
Ideation management
Roll up of metrics from activities to projects to
portfolios for executive decision-making
Benefits
Shorter innovation cycle times
Higher success rates and lower development
costs, leading to increased revenues and
margins
Global organizational visibility of all innovation
projects
Enabling global consistency with local
adaptability
Improved cross-functional productivity
 Specification Management

Specification Management streamlines

collaborative business processes for
managing product data creation,
integration, localization, taxonomy and
workflow across the enterprise and
with value chain partners

Enablers
One version of the truth for all product data,
pre-configured for the Consumer Goods industry
Connected model allowing rollup of data from
raw materials to finished products
Available in all languages and cultures
Workflow automation enabling review and
approval
Benefits
One single version of the truth
Traceability of product data through best-in-
class connected data model
Specification re-use and rationalization
Improved compliance, quality and safety
Reduced rework and recalls
Decreased inventory and inventory holding
costs
Increased productivity
 Supplier Management

Supplier Management provides

companies with a collaborative business
process for managing supply chain
entities and sourcing relationships as far
upstream in the supply chain as needed

Enablers
One version of the truth for all supply chain
entities and sourcing relationships
Automated management of Approved Supplier
List (ASL) based on cross-functional criteria
Supplier collaboration around specifications
Benefits
Sourcing efficiencies through global visibility of
supply network
Direct material spend savings
Improved compliance and safety through supply
network
Improved supplier collaboration
Increased productivity
 Formulation and BOM Management
Formulation and BOM Management enables
the rapid prototyping, evaluation and
optimization of formulations, with tracking
of the real-time impact of process and BOM
changes on product costing, compliance,
nutrition and ingredient labeling
Enablers
Formulation and re-formulation of products, incl.
definition of manufacturing process and BOM
Real-time visibility of impact of formulation
changes on cost, compliance, nutrient data and
ingredient labeling
Formulation optimization based on complex set
of Consumer Goods-related factors
Integration of formulations with review and
approval process for rapid adoption
Benefits
Enabling more effective formulation and re-
formulation of products to capitalize on market
opportunities
Higher product development velocity
Real-time visibility into formulation changes
Formulation optimization
Re-use of existing raw material specifications
Tracking of all experimental formulas for
traceability and reuse
Reduced product development costs
 Packaging and Labeling Management
Packaging and Labeling Management
streamlines and accelerates the packaging
and labeling development process by
leveraging a single version of the truth and
facilitating the cross-functional annotation
and approval process
Enablers
All packaging and labeling data in one
version of the truth
Traceability of data used for product labeling
Electronic review and annotation process,
including 3D viewing
Internal and external collaboration
Benefits
One single version of the truth
Acceleration of packaging and labeling
innovation process
Integration between packaging, labeling and
product processes and date
Electronic packaging collaboration, annotation
and review
Reduced rework and recalls
Decreased inventory and inventory holding
costs
Increased productivity
 Compliance and Quality Management

Compliance and Quality Management

enables companies to ensure quality,
safety and compliance right the first
time, and to maintain conformance
through the supply chain

Enablers
Compliance traceability and compliance
screening
Quality conformance integrated to specifications
Label claims determination
Supplier conformance to specifications
Nutrition surveillance integrated with
specifications
Benefits
Minimized risk in the areas of quality,
compliance and safety
Higher consistency in quality and food safety
Compliance traceability and screening
Consistent sensory evaluations
 Data Syndication

Data Syndication enables companies to

harmonize specification data with
internal systems and synchronize the
resulting finished product data with
external data pools and trading partners

Enablers
GDSN-compliant data syndication to external
data pools and trading partners
Data harmonization with internal systems
Data syndication fully integrated within
specification development process
Workflow-enabled syndication with full support
for bi-directional messaging
Benefits
Faster go-to-market cycles with automated data
synchronization to customers
Harmonization and cross-referencing with
internal systems
Reduction of data errors between internal and
external systems
Increased productivity
 Product Lifecycle Management
Key Capabilities By Solution Key capabilities
Electronic lab books
Key capabilities Reformulation
CG connected data model Formula optimization
All languages, cultures, UOMs and currencies Ingredient declaration
Raw materials re-use/rationalization Nutrition rollup
BOM management
Factory-floor documentation Key capabilities
Compliance management Packaging BOM management
Labeling Technical copy
Nutrition management Packaging and artwork review
and approval
2D/3D viewing

Key capabilities Key capabilities

Supply network Compliance screening
Supplier consolidation Product evaluations
Supplier documentation Regulatory approvals
Sourcing approvals Quality conformance
Supplier/co-packer collaboration Label claims
Nutrition surveillance

Key capabilities
Key capabilities
Internal data harmonization
Ideation management
External data synchronization
Stage-Gate framework
Cross-functional collaboration
Template-based project management
Product development metrics
Portfolio management
Portfolio analytics
 Product Lifecycle Management
Product Options
Food & Beverage Non-Durables Retail
H&BC/
Apparel & Food Service/
Food Beverage Tobacco Household Other Private Label
Footwear Restaurants

Agile Agile Agile

Agile
Product Product Product
Product
Lifecycle Lifecycle Lifecycle
Lifecycle
Mgt for Mgt for Mgt for
Mgt
Process Process Process

Is the main Is the main

pain point pain point
process or process or
Formulated Assembled Formulated Assembled
discrete? discrete?
Products Products or Products Products or
Packaging Packaging

Agile Agile
Agile Agile
Product Product
Product Product
Lifecycle Lifecycle
Agile Product Lifecycle Lifecycle
Lifecycle Mgt for Mgt for Mgt for
Mgt Mgt
Process = Prodika Process Process
Agile Product
Lifecycle Mgt = Agile 9
 Product Lifecycle Management
Product Options

If you are selling to a prospect in Lead with

CG Food and Beverage Agile PLM for Process (focus on formulated products)

CG H&BC and Household Agile PLM for Process if the main pain point is around formulated processes
Agile PLM if the main pain point is around assembled/discrete processes

CG Tobacco Agile PLM for Process if the main pain point is around formulated processes
Agile PLM if the main pain point is around assembled/discrete processes

CG Non-Durables Agile PLM (focus on assembled products)

Retail Food Service/Restaurants Agile PLM for Process (focus on formulated products)

Retail Private Label (Grocery) Agile PLM for Process (focus on formulated products)

Note:
Private Label companies go through 4 stages of maturity:
1. Buying finished products with their own labels
2. Managing their own specifications
3. Managing their own specifications and formulations (with their own R&D staff)
4. Managing their own specifications, formulations and manufacturing.

If the prospect will remain at stage 1 for the foreseeable future, we could also
position Agile PLM (no need to maintain the entire formulated product
structure).
Retail Private Label (Non-Grocery) Agile PLM (focus on assembled products)
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
 Value Proposition
Financial Metrics, Operational Initiatives and PLM

Financial Metrics Operational

Operational Initiatives
Initiatives PLM Enablers

PLM Revenue `` Decrease

Decrease time-to-market
time-to-market New Product
`` Improve
Improve success
success rate
rate of
of new
new products
products Development &
impacts `` Accelerate
Accelerate formulation,
formulation, packaging
packaging and
and labeling
labeling Introduction
all
Cost of Goods `` Re-use
Re-use and
and rationalize
rationalize raw
raw materials
materials
financial `` Facilitate
Specification
Profits Facilitate regional/global
regional/global sourcing
sourcing Management
metrics `` Consolidate
Consolidate supply
supply base
base
`` Enhance
Enhance compliance
compliance BOM and
`` Maintain
Maintain quality
quality conformance
conformance Formulation
`` Optimize products
Optimize products Management
`` Reduce
Reduce rework
rework and
and recalls
recalls
Packaging &
G&A `` Improve
Improve global
global information
information visibility
visibility Labeling
`` Increase
Increase productivity
productivity Management
`` Improve
Improve collaboration
collaboration with
with trading
trading partners
partners
Compliance &
`` Optimize R&D costs
Optimize R&D costs across new products Quality
`` Reduce
Reduce manual
manual data errors Management
Shareholder `` Harmonize
Harmonize product
product data
data across
across all
all internal
internal systems
systems
Value `` Syndicate
Syndicate product
product data
data to
to customers
customers
Supplier
Management
Inventories `` Reduce
Reduce number
number of
of raw
raw materials
materials
`` Consolidate
Consolidate number
number ofof vendors
vendors
Assets `` Decrease
Decrease reworks
reworks and
and returns
returns Data
Syndication
AP/AR `` Improve
Improve data
data accuracy
accuracy with
with trading
trading partners
partners
 Value Proposition
PLM Impact

Driver Objectives PLM Impact

Reduce cycle time by 80%

Accelerate innovation
Time Improve launch date performance
and meet launch dates
by up to 100%

Reduce total cost of

Decrease product cost by 15%
Cost innovation (process
Reduce development cost by 16%
and product)

Increase sales and Increase product revenue by 19%

Value
margins Improve margins by 28%

Ensure compliance Reduce cost of compliance

Risk Enhance quality Improve customer satisfaction
and safety Reduce rework and recalls

Source: AberdeenGroup, Profiting from PLM: Strategy and Delivery of the PLM Program, July 2007; Oracle data
 Product Lifecycle Management
Customer Examples

Food & Beverage

Health & Beauty

Care and
Household
Products

Non-Durables
 Customer Profile: H. J. Heinz
COMPANY OVERVIEW
H. J. Heinz Company manufactures and markets processed
food products throughout the world. Principal products
include ketchup, condiments and sauces, frozen food,
soups, beans and pasta meals, infant food and other
processed food products, which are sold to consumers, as
well as foodservice and institutional customers.
Revenues (2006): $9.0 Billion; employees (2006): 33,000
CHALLENGES/OPPORTUNITIES
Proliferation of specifications (from finished products to
ingredients)
Limited visibility and security with data stored in multiple
manual systems
Inconsistent specification management process
Inconsistent and slow new product introduction process
SOLUTIONS
Agile Product Lifecycle Management for Process
Agile Product Data Management for Process
Agile Formulation and Compliance for Process
Agile Product Supplier Collaboration for Process
Agile New Product Development and Introduction for
Process
Launched Project Viper in 2000
Implemented in over 175 sites, in 21 languages/cultures,
with over 4,500 registered users
CUSTOMER PERSPECTIVE
"Agile Prodika [now Oracle] has greatly
improved our raw material, supplier, and
product intelligence. Information which used
to take weeks to gather is now a natural
extension of our day-to-day business
processes."
Deb Crosby, Chief Quality Officer
RESULTS
Simplification and global standardization of
business processes
Global information visibility with one single
version of the truth (data accessible in
seconds vs. weeks)
SKU rationalization and reduction of
number of specifications (30% reduction in
SKUs)
Faster new product introduction cycles
(reduced labeling cycle from 45 to 7 days)
Improved supplier collaboration
 Customer Profile: Mc Donalds
COMPANY OVERVIEW
McDonalds Corporation primarily franchises and
operates restaurants in the food service industry.
These restaurants serve a value-priced menu in more
than 100 countries around the world. All restaurants
are operated either by the Company, by franchisees or
by affiliates and developmental licensees operating
under license agreements.
Revenues (2006): $21.6 Billion; employees (2006):
465,000
CHALLENGES/OPPORTUNITIES
Islands of information and disconnected systems
Inconsistent processes across regions
Paper-based menu management, product
management and supplier management
SOLUTIONS
Agile Product Lifecycle Management for Process
Agile Product Data Management for Process
Agile Formulation and Compliance for Process
Agile Product Supplier Collaboration for
Process
Agile New Product Development and
Introduction for Process
Launched Project Merlin in 2005
Implemented in North America, Europe and Australia
with over 400 registered users
CUSTOMER PERSPECTIVE
Our service provider for Merlin had to
understand the technology needs; but more
importantly, understand how the information
would be used to support business processes
and solve problems. Prodika [now Oracle]
understood this expectation without being
asked Other potential vendors talked about
technology and functionality. Prodika [now
Oracle] talked to us about process
optimization.
Catherine Adams, Corporate VP, Worldwide
Quality, Food Safety and Nutrition
RESULTS
Global information visibility
Improved communication and coordination
across regions and functions, and with
suppliers
Improved ability to design quality into new
products, and manage conformance to design
Streamlined new product development
process
 Customer Profile: Bayer
Consumer Care
COMPANY OVERVIEW
The Consumer Care Division of Bayer HealthCare
manufactures parent company Bayer's line of over-the-
counter drugs and nutritional supplements. One of the
largest manufacturers of OTC drugs in the world, the
division has production facilities in Europe, North America,
Latin America, and Asia and sells its products in over 100
countries. Its over 170 brand stable includes Aspirin, Aleve,
Alka-Seltzer, Midol, Talcid and One-a-Day.
Revenues (2006): $15.5 Billion (Bayer Healthcare)
CUSTOMER PERSPECTIVE
Agile [now Oracle] has helped us to achieve
our goal: an integrated approach to manage
all the relevant data and processes around
our products formulas, labeling
information, and packaging specifications.
Craig Morgan, Sr. Director, Packaging
Operations

CHALLENGES/OPPORTUNITIES
Lack of global visibility of product, packaging and labeling RESULTS
data
Inconsistent tracking of ingredient data per country, leading
Reduced cycle times for packaging by 1/3
to regulatory compliance issues 50% reduction in packaging/labeling errors
Need to reduce product cost and improve supplier and 50% reduction in rework cost
collaboration Consistent tracking of ingredient data per
Too many steps to release products to market
country
SOLUTIONS Improved quality and compliance
Agile Product Lifecycle Management Global visibility of data
Agile Product Collaboration
Agile Product Portfolio Management
Project started in early 2005
Over 700 users globally
 Customer Profile: Philips Oral
Healthcare
COMPANY OVERVIEW
Philips Oral Healthcare makes Sonicare, a high-tech
toothbrush that uses patented sonic technology, fluid
dynamics, and electromechanical design to aid in removing
plaque bacteria from between teeth and at the gumline.
POHC sells its products in the US through warehouse clubs
(Costco), mass merchandisers (Target and Wal-Mart),
department stores (Sears), and other outlets. It also
distributes its products in Canada, Europe, and Japan.
Revenues and employees: NA (division of Royal Philips)
CHALLENGES/OPPORTUNITIES
Increasing product and supply chain complexity
4x increase in new product programs
Slow innovation cycle times due to inefficiencies in product
development
No formal support for marketing claims that differentiates
Sonicare from competition
SOLUTIONS
Agile Product Lifecycle Management
Agile Product Collaboration
CUSTOMER PERSPECTIVE
Our inventory performance over the last
year since we really started using Agile has
gone up almost 100% in terms of inventory
turns.
Mark Johnson, ex-Vice President, Supply
Chain Operations
RESULTS
Complete product record from concept to
end of life within Agile
Manufacturing and R&D costs reduced by
30%
Inventory turns increased 100% in a year
after implementation
Reduced cycle times for new product
introduction
Improved change control on raw material
releases
Research documentation associated with
marketing claims now within product
record
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
 Product Lifecycle Management
Who Do You Sell To?

Regulatory & Sales &

CEO CFO R&D QA Sourcing Manufacturing
Compliance Marketing
New Product
Development &
Introduction
3 3 3 3 3 3 3
Specification
Management 3 3 3 3 3 3
BOM and
Formulation
Management
3 3 3 3
Packaging &
Labeling
Management
3 3 3 3 3
Compliance &
Quality
Management
3 3 3 3 3 3 3
Supplier
Management 3 3 3 3 3 3
Data
Syndication 3
 Customer Targeting

Here is a short list of questions to ask:

Product How many finished products (skus), how many product categories, how many
complexity ingredients, how many packaging variants?
How is specification management working, how is formulation management working?
Supply chain How many suppliers?
complexity How is supplier management working (global supply chain complexity, sourcing
strategies)?
Organization How many business units, regions, countries, locations (R&D centers, plants),
complexity languages?
How is cross-functional productivity?
Company Do they focus on innovation acceleration, product cost reductions, quality and
objectives and compliance improvements, supply chain simplification, productivity improvements?
strategies
Business How are the following processes working: new product introduction, specification
processes management, formulation management, BOM mgt, packaging and labeling, compliance
and quality, supplier management?
Systems and What existing tools and systems do they have to manage these processes?
tools
 Customer Targeting

Here is the detailed Opportunity Qualification

document:
Microsoft Excel
Worksheet

Here is the Scope Assessment: Microsoft Excel

Worksheet
 Outline

Industry Trends
Business Challenge
Oracle Offering
Solution Detail
Value Proposition
Customer Targeting
Conclusion
 Conclusion

Product Launch
Product Launch

The goal: improve

innovation and achieve
Cash flow

sustainable growth

Time

How to achieve the goal:

implement an integrated
Innovation Framework
 Innovation in Consumer Goods
Where Are You Today?

Innovation
Results

Stage 1 Stage 2 Stage 3 Stage 4

Silo-Based Manual Enterprise- Integrated Enterprise

Point Solutions
Processes Wide Processes PLM Solution

3 Manual alignment 3 Selective 3 Integrated

of innovation productivity innovation
competencies improvements framework
 Oracle Innovation Management for CG
What is Next?

Transforming Sales and Operations Planning

Consumer
Insights Into
Winning Products Category Demand Winning
Plans Plans Products

Consumer Innovation Process

Insights Portfolio Management

Consumer Innovation Metrics

Marketing Strategies
Project Management

Concept Product
Ideas Feasibility Scale-Up Launch
Development Development
Platforms
Attribute-Based
Forecasting and
Demand Modeling
Product
Insights

Concept Brief Manufacturing Processes Finished Products

Product Brief Formulations/BOMs Labels and Artwork

Customer Requirements Ingredients Compliance

Suppliers and Co-Packers Packaging Materials Quality and Safety

 Oracle Innovation Management for CG
What is Next?
Integration Integration to Siebel and
to common Demantra to drive
Integration of Process and Integration BI platform consumer-driven
Discrete PLM functionality to S&OP (EPM/BI) innovation
Demantra
Demand
Planning
Siebel
Agile PLM and
Agile PLM S&OP EPM/BI Consumer
for Process Advanced
Marketing
Forecasting/
Demand
Modeling

Fusion Middleware/Application Integration Architecture PIM

Integration
to PIM

Integration
SAP EBS JDE
to ERP
 Key Take-Aways

9 PLM is a business imperative in CG

9 We have a differentiated PLM offering
9 We have referenceable customers
9 You can sell and implement Oracle PLM as a value-
add solution on top of SAP ERP
9 The value created by PLM can justify high revenues
to both Oracle and its partners